IMPORTANT DISCLAIMER: Blank Capital Research ("BCR") is a technology platform, not a registered investment advisor or broker-dealer. The algorithmically generated signals, scores, and rankings provided on this site ("God Mode" Signals) are for informational and research purposes only and do not constitute financial advice, investment recommendations, or an offer to sell or solicit an offer to buy any securities.
HYPOTHETICAL PERFORMANCE RESULTS: The "timing scores" and "regime signals" displayed are based on quantitative models. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity.
RISK OF LOSS: Trading in financial markets involves a high degree of risk and may result in the loss of your entire investment. Data provided by third-party sources (Intrinio, Snowflake) is believed to be reliable but is not guaranteed for accuracy or completeness. Past performance is not indicative of future results.
© 2026 Blank Capital Research. All rights reserved. System Version: Aegis V8 (God Mode).
Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#1846
Positioning
Market Dominance
Retail Trade
Retail
$64.8B
William C. Rhodes
AutoZone, Inc. retails and distributes automotive replacement parts and accessories. Its products include A/C compressors, batteries and accessories, bearings, belts and hoses, calipers, chassis, clutches, CV axles, engines, fuses, and engines. As of November 20, 2021, it operated 6,066 stores in the United States; 666 stores in Mexico; and 53 stores in Brazil.
Get full access to institutional-quality research tools with Blank Capital Pro.
Upgrade to ProStarting at $19.99/mo
Get full access to institutional-quality research tools with Blank Capital Pro.
Upgrade to ProStarting at $19.99/mo
Get full access to institutional-quality research tools with Blank Capital Pro.
Upgrade to ProStarting at $19.99/mo
Get full access to institutional-quality research tools with Blank Capital Pro.
Upgrade to ProStarting at $19.99/mo
Get full access to institutional-quality research tools with Blank Capital Pro.
Upgrade to ProStarting at $19.99/mo
X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = AZO ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$ARCO Arcos Dorados Holdings Inc. | 73 | 85 | 89 | 65 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$IMKTA INGLES MARKETS INC | 70 | 73 | 89 | 76 | 11.3x | 4.1x | 6.9% | 4.1% | 24.3% | 2.8% | 1.9% | -3.4% | 1.1% | 33.0x | $1.2B | VS | |
$SGU STAR GROUP, L.P. | 69 | 82 | 79 | 63 | - | - | -25.2% | -10.6% | 28.1% | -6.3% | -5.4% | -7.8% | 6.1% | 57.0x | $396M | VS | |
$EZPW EZCORP INC | 68 | 77 | 82 | 89 | 7.2x | 4.2x | 12.0% | 6.2% | 59.1% | 11.6% | 8.5% | 10.5% | 0.0% | 52.0x | $764M | VS | |
$HTHT H World Group Ltd | 68 | 91 | 44 | 84 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$DDL Dingdong (Cayman) Ltd | 68 | 86 | 82 | 57 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$SBH Sally Beauty Holdings, Inc. | 68 | 83 | 92 | 77 | 5.1x | 2.3x | 32.0% | 6.6% | 51.5% | 8.4% | 4.9% | -1.0% | 0.0% | 178.0x | $934M | VS | |
$SPH SUBURBAN PROPANE PARTNERS LP | 67 | 80 | 90 | 53 | - | 13.0x | 0.4% | -3.5% | 61.7% | 2.1% | -5.7% | 2.2% | 7.1% | 190.0x | $1.2B | VS | |
$IHG INTERCONTINENTAL HOTELS GROUP PLC /NEW/ | 67 | 63 | 81 | 67 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ROST ROSS STORES, INC. | 67 | 63 | 55 | 83 | 25.2x | 16.5x | 34.8% | 13.3% | 28.0% | 11.6% | 9.1% | 10.4% | 1.0% | 26.0x | $51.6B | VS | |
$AZO AUTOZONE INC | 51 | 44 | 45 | 52 | 28.8x | 18.9x | -62.7% | 11.0% | 52.1% | 17.8% | 12.2% | 9.3% | 0.0% | - | $64.8B | ||
| SECTOR BENCH | - | - | - | - | - | 21.4x | 9.1x | 9.6% | 3.6% | 37.3% | 4.4% | 2.4% | 3.7% | 0.0% | 0.7x | - | REF |
AUTOZONE INC (AZO) receives a "Hold" rating with a composite score of 51.1/100. It ranks #1846 out of 7,333 stocks in our coverage universe and carries a 3-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
Sign in to join the discussion.
In-line with peers — no strong momentum signal
Fair valuation relative to peers
Average quality profile
Low volatility — smoother ride and historically better risk-adjusted returns
Aggressive spending — empire-building risk, dilutive growth
Mid-range overall rating
Get full access to institutional-quality research tools with Blank Capital Pro.
Upgrade to ProStarting at $19.99/mo
Relative valuation derived from Retail Trade sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for AZO.
View All Ratings| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 44 | 40 | +4NEUTRAL |
| MOMENTUM | 52 | 53 | -1NEUTRAL |
| VALUATION | 45 | 45 | 0NEUTRAL |
| INVESTMENT | 28 | 26 | +2NEUTRAL |
| STABILITY | 92 | 97 | -5NEUTRAL |
| SHORT INT | 52 | 56 | -4NEUTRAL |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROE proxy -62.7% (sector 9.6%)
GM 52% vs sector 37%, OM 18% vs sector 4%
Capital turnover N/A
Rev growth 9%, 11yr history
Interest coverage N/A
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate AUTOZONE INC (AZO) as a Hold with a composite score of 51.1/100 at a current price of $3781.79. The stock presents a mixed quantitative picture — neither compelling enough to warrant new accumulation nor weak enough to justify selling.
AUTOZONE INC holds a top-quartile position (#0 of 50) within the Retail Trade sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 51.1/100 places it at rank #1846 in our full universe.
No Moat
Low
Poor
Fair Value
Gross margins of 52% signal strong pricing power.
Stable competitive position in a defensive sector.
Vulnerability to macroeconomic shocks and interest rate volatility.
AUTOZONE INC represents a hold based on multi-factor quantitative performance.
Our model assigns AUTOZONE INC a Hold rating, with a composite score of 51.1/100 and 3 out of 5 stars. Ranked #1846 of 7,333 stocks, AZO presents a mixed quantitative picture — neither compelling enough to initiate new positions nor weak enough to warrant selling. Investors already holding may consider maintaining their position while monitoring for changes in the factor profile.
AZO's quality score of 44/100 is below average, suggesting challenges with profitability or capital efficiency. The company reports a return on equity of -62.7% (sector avg: 9.6%), gross margins of 52.1% (sector avg: 37.3%), net margins of 12.2% (sector avg: 2.4%). Investors should examine whether management is actively addressing these weaknesses or if they reflect structural industry headwinds.
With a value score of 45/100, AZO appears somewhat expensive relative to its fundamentals. Key valuation metrics include a P/E ratio of 28.78x, an EV/EBITDA of 18.86x. Investors paying a premium here are likely betting on above-average growth or margin expansion to justify current prices.
AUTOZONE INC's investment score of 28/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of 9.3% vs. a sector average of 3.7% and a return on assets of 11.0% (sector: 3.6%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
AZO demonstrates moderate momentum with a score of 52/100, suggesting a neutral price trend without strong directional conviction. Revenue growth stands at 9.3% year-over-year, while a beta of 0.14 reflects its sensitivity to broader market moves. Moderate momentum may indicate the stock is consolidating or transitioning between trends, warranting close monitoring of upcoming catalysts.
AUTOZONE INC earns an excellent stability score of 92/100, reflecting low price volatility and a conservatively managed balance sheet. Key stability metrics include a beta of 0.14. Stocks with this level of stability tend to act as portfolio anchors, providing downside protection during market corrections while still participating in broad market advances.
The short interest score of 52/100 for AZO suggests somewhat elevated bearish positioning by institutional traders. With a $64.8B market cap (large-cap), AUTOZONE INC may experience above-average volatility. Investors should consider whether the short thesis has merit or if it creates a potential short-squeeze opportunity.
AUTOZONE INC is a large-cap company in the Retail Trade sector, ranked #0 of 50 in its sector (100th percentile) and #1846 of 7,333 overall (75th percentile). Key comparisons include ROE of -62.7% trailing the 9.6% sector median and operating margins of 17.8% above the 4.4% sector average. This top-quartile standing reflects exceptional competitive strength relative to Retail Trade peers.
While AZO currently exhibits a HOLD profile, superior opportunities exist within the RETAIL TRADE sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Retail Trade Alpha →Quant Factor Profile
Key factor gap
Stability (92) vs Investment (28) — closing this gap could shift the rating.
EV/EBITDA 107% ABOVE SECTOR MEDIAN
ROE 753% BELOW SECTOR MEDIAN
Gross Margin 40% ABOVE SECTOR MEDIAN (FAVORABLE)
Above 50MA
37.18%
Net New Highs
+51081
Tariff costs are becoming unsustainable for automakers, and they are going to have to raise prices or cut features, said the president of Sonic Automotive.
AutoZone has demonstrated strong long-term stock performance, with a 201% gain over five years and a remarkable 3,500% increase over two decades. Despite recent stock price decline and margin pressures, the company maintains steady revenue growth and consistent demand for aftermarket auto parts.
LKQ is overhauling its business, including selling its self service segment and reviewing a range of potential business alternatives. The company has also approved a restructuring plan aimed at improving operational efficiency. These moves come as LKQ faces macroeconomic and tariff pressures alongside softer demand conditions. LKQ, traded as NasdaqGS:LKQ, is making these changes with its shares around $33.29. The stock is up 10.9% year to date, but has seen a 16.5% decline over the past...
Why AutoZone’s next earnings date is drawing extra attention AutoZone (AZO) heads into its March 3 earnings release with analysts expecting a slight decline in earnings per share and revenue growth, a Zacks Rank #4 (Sell), and a premium valuation to its industry. See our latest analysis for AutoZone. AutoZone’s share price has been resilient over the past year, with a 13.26% year to date share price return and a 10.57% total shareholder return over 12 months. However, the recent 1 day share...
The aging U.S. vehicle fleet and high interest rates preventing new car purchases are creating strong tailwinds for the aftermarket auto parts industry in 2026. O'Reilly Automotive and AutoZone are positioned to benefit from increased repair demand, while Advance Auto Parts faces headwinds due to operational challenges. The sector offers recession-resistant growth as vehicle repairs remain a necessity regardless of economic conditions.